1:2 Bonus Shares By Navratna PSU Stock: October 07 Record Date; A Promising Buying Opportunity?

The National Buildings Construction Corporation (NBCC) is a Navratna Enterprise of the Government of India. The Company is divided into three market-focused segments: PMC (Project Management Consultancy), EPC (Engineering Procurement & Construction), and RE (Real Estate), with activities spanning across India and overseas. NBCC, a Government of India Civil Engineering Enterprise that was established in 1960, is currently the unchallenged leader in the construction sector. With its headquarters located in Delhi, it is recognised as a Navratna CPSE.

NBCC Bonus Shares

"The Board of Directors has recommended the issuance of Bonus Shares to the Shareholders of the Company in the ratio of 1:2 i.e. 1 (One) new fully paid-up Equity Share of Rs 1/- (Rupee One Only) each for every 2 (Two) existing fully paidup Equity Share of Rs 1/- (Rupee One Only) each to the eligible members of the Company as on Record Date, subject to the approval of the Shareholders in the forthcoming Annual General Meeting. The Board has fixed Monday, October 07, 2024 as Record date to determine the eligibility of members to receive bonus shares," said NBCC (India) in a stock exchange filing.

A total 90,00,00,000 (Ninety Crore) equity shares having a face value of Rs. 1 per share are the total number of securities proposed to be issued as a part of bonus issue. The estimated date by which such bonus shares would be credited/dispatched is within two months from the date of approval of the Board i.e. by October 31, 2024.

The bonus equity shares will be issued out of free reserves created out of profits and available as of March 31, 2024 and free reserves of Rs. 90 crore will be utilized for the issue of bonus shares according to the company. As per a regulatory filing, NBCC has a balance of Rs. 1,959 crore being reserves & surplus available for capitalization as of March 31, 2024.

NBCC Latest News

On September 02, 2024, NBCC India received an order deal of Rs 180 Cr from Oil India for the execution of new works relating to the construction of two multi-stories Residential Building (G+6); Office Building and Recreation Center with Auditorium Facility with state-of-the-art features at Oil Pipeline Headquarters (PHQ), Guwahati, Assam. Another order of Rs 2.50 Cr has been placed by Indian Statistical Institute Delhi Centre, Delhi to NBCC for rehabilitation of Platinum Jubilee Hostel at ISI Delhi Centre New Delhi.

NBCC Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "NBCC is currently trading at Rs 188.45 and has recently entered a consolidation phase, fluctuating within a range of approximately Rs 180 to Rs 200. The stock has the potential to reach short-term targets of Rs 240 if it breaks through the key resistance level near Rs 200. The immediate support level is around Rs 180. The Relative Strength Index (RSI) is currently at 55.6, which is near the neutral zone, suggesting a possible upward trend."

"To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 170. This precaution will help protect your investment in the event of an unexpected market reversal. In summary, based on technical analysis and current market conditions, NBCC appears to be a promising buying opportunity for those targeting a price of Rs 240, provided that appropriate risk management measures are implemented," the analyst recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.